SQL Native Client, linked server error Only on Deletes

We are using a SQL Native Client to connect to a local SQL Server 2005 from a Boarland application. It will fine for selects, inserts, and updates. When we delete we get the error:

Could not find server 'SERVERNAME\SQLEXPRESS' in sys.servers. Verify that the correct server name was specified. If necessary, execute the stored procedure sp_addlinkedserver to add the server to sys.servers

The default instance, the only instance, is SERVERNAME\SQLEXPRESS, and we are not using linked servers. Any ideas? I believe we moved the MDF and LDF files to a new server for this DB, and then reattached it.

Update 1

There is no SQL. This is all happening through programmatic interaction with cursors. It is an ODBC driver using ADO. You run TableObj->Delete to remove the record.

From stackoverflow

• Can you post your SQL for the DELETE stmt? Sounds suspiciously like a foreign key violation...

• Got it. I ran

  SELECT @@servername
  

  That returned the old host name of the box. I than ran

  sp_dropserver 'OLDHOSTNAME\SQLEXPRESS'
  go
  sp_addserver 'NEWHOSTNAME\SQLEXPRESS', local
  

  I then got

  Server 'NEWHOSTNAME\SQLEXPRESS' is not configured for DATA ACCESS

  I ran

  sp_serveroption 'ICS-POS3-NEW\SQLEXPRESS', 'data access' , 'true'
  

  This got me the error

  Transaction context in use by another session

  Which is because of linked servers. I found that the local option on the add server did not take affect until I restarted the server. I restarted, then it just worked.